Advantages of Hiring a Third-Party Logistics Company

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Advantages of Hiring a Third-Party Logistics Company

Logistics operations and supply chain management are specialized functions that form one of the most essential parts of your business. Here are the reasons why you must hire one!

 
The continuous momentum in the growth of the eCommerce industry due to the expansion of the manufacturing industry was further accelerated by the global pandemic. As an outcome of this growth, it is increasingly becoming a logistics challenge to get your products delivered to your customers in domestic and global markets. To keep expanding your business, you need help managing order fulfillment efficiently, mainly because customers nowadays have high expectations from eCommerce brands.
 
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Apart from that, logistics operations and supply chain management are specialized functions that form one of the most essential parts of your business. Whether you are a small and medium organization expanding your business or operating at an enterprise-level, you need professionals to have a seamless order fulfillment process. Hence it is advisable to hire a Third-Party Logistics [3PL] firm as a strategic partner to focus on other aspects of your business.
 

Services 3PLs provide

 
Usually, 3PL companies offer logistics services that include parts or all aspects of your shipping operations based on your requirement and contract. If hired to manage all your logistics operations, then they take care of the complete process of moving products from manufacturers to distributors and delivering to the end consumers. In most cases, outsourcing your shipping and fulfillment services to a 3PL include the following:
 
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  • Transportation
  • Warehousing
  • Materials procurement
  • Inventory management
  • Customs brokerage
  • Freight audit
  • Payment
  • Shipment tracking

Pros of Hiring a 3PL

 
When a professional company manages your inventory, product organization, and order delivery, that means there are significant advantages of hiring a 3PL partner, which are the following:
 
Cost-Effective Logistics Operations. Your 3PL partner helps you save cost and time across your logistics operations by taking care of the critical functions of logistics management. The activities of a 3PL firm include renting a warehouse, selecting the most suitable mode of transportation to deliver orders, obtaining improved technology for tracking and supporting the supply chain system. Thus, your in-house team becomes free to focus on your core competencies.
 
ALSO READ: How to Reduce Shipping Costs for eCommerce Businesses
 
Scalability. eCommerce retailers mostly require an efficient 3PL partner to help them grow their business. Most 3PL companies have the infrastructural facility to manage the distribution and fulfillment as your company grows or the demand upsurge during a peak season.
 
Expand Market. As an eCommerce retailer serving customers across geographies, it is always a good idea to partner with a 3PL company for efficient order fulfillment. That way, you will cater to customers in a market where they have shown interest in your products. Also, it helps you to spread your wings and test a new market without too much investment in various aspects of warehousing, distribution, and labor.
 

Conclusion:

 
So, you can surely apprehend from the above that hiring a 3PL partner is a good decision for your eCommerce business. Based on the size of your firm and specific requirements of order fulfillment for the products you deliver, significant industry experience of a 3PL can change the game. However, it is absolutely critical that you carefully evaluate the capabilities of a 3PL firm and check market reviews and feedback before making your selection. After all, it is your business, and you have everything at stake unless your 3PL partner takes care of delivering accurate orders on time, every time.
 

About XPDEL:

 
XPDEL is a leading hi-tech provider of fulfillment and logistics services, on a mission to enable growth for eCommerce companies. Our existing customers know that everything we do or share is to help them grow. We are futuristics in our vision and constantly work on creating technology that allows us to meet customer expectations for today and tomorrow.